Tax Preparer Says Refunds Show ACA’s Impact
"Over half, 52 percent, are actually paying a portion of their refunds back,"
These filers are seeing smaller refunds, on average
The change in refunds occurs as taxpayers reconcile their 2014 income with the benefits they received under the Affordable Care Act.
Thanks to the bump up, their average refund totaled
Information on the act's tax impact is not yet available from the
This tax season, Americans who received an advance tax credit to make health care affordable during 2014 are required to reconcile those benefits with their earnings in 2014. The credits had been based on their estimate of what they would earn during the year.
Those who earned less than they had estimated should have gotten a bigger government assist in buying health insurance during the year. So they're getting a bigger tax refund now.
Taxpayers who earned more than they had estimated got a bigger insurance premium subsidy than their actual income allowed them to qualify for. They're giving back the difference.
One such taxpayer worked with
"She nailed that one perfectly," Helmkamp said.
Another of his clients did not have health care coverage last year and owed a
The penalty is
The early effect on refunds and assessments of penalties under the health care act are about in line with what
For example, he has helped some filers find exemptions from the penalty for not having health coverage last year. And it has helped sell them on enrolling for coverage for 2015.
"Wouldn't you rather have insurance than an exemption?" Meyer has told them.
To reach
___
(c)2015 The Kansas City Star (Kansas City, Mo.)
Visit The Kansas City Star (Kansas City, Mo.) at www.kansascity.com
Distributed by Tribune Content Agency, LLC
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News